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On the Development of Alibaba 孙剑林 柳亚 张泽中 刘尉轩 On the Development of Alibaba Introduction The Short History of Alibaba’s Development Reasons for Alibaba’s Rapid Development Alibaba’ s tomorrow---opportunities and challenges Conclusion Introduction With the fast popularization of the Internet at the end of 1990s, the Internet-based economy has been mushrooming. Alibaba was established in 1999 and a B2B service platform was constructed. Within only three years, the number of its customers or members has increased to as many as 7.5 million(Oct.2005) ( See Figure 1 ). The international e-business community are amazed at the miracle of its rapid development. The Short History of Alibaba’s Development Mr. Jack Ma, CEO and his 18 colleagues bought the domain name from a Canadian and established Alibaba on March 10, 1999. The story of Alibaba and the forty thieves is well-known and “Alibaba” is easy to pronounce and remember. It symbolizes fortune and wealth.. The domain name has become a valuable intangible asset for the company later and its value has kept increasing at the rate of RMB100 yuan every day. March 1999 Alibaba was established. April, 1999 Alibaba set out the mode of operation on the basis of B2B services, worked out the strategies to make use of the international capital to cultivate and develop the domestic e-market, and to develop the export market for China’s small and medium-sized enterprises (SMEs) abroad. July, 1999 Alibaba’s China Holdings Corporation was established in Hong Kong Aug. 1999 Alibaba got venture capital amounting to USD5miliion from The Goldman Sachs Group. Sept., 1999 Alibaba’s Hangzhou Research and Development Center was established. Oct. 1999 Alibaba participated in Guangzhou Trade Fair successfully. Spring, 2000 The cooperation agreement with Softbank Corporation was concluded, leading to the introduction of venture capital amounting to USD20 million. Alibaba’ headquarters was established in Shanghai. Mr. Masayos
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